VANCOUVER - Federal Environment Minister John Baird says a Canada-wide carbon tax would be akin to a "pay-and-pollute" system.

Baird was slamming Liberal Leader Stephane Dion's plan to cut greenhouse gas emissions.

Dion says shifting to a carbon tax on polluters is the right thing to do for the country, even as consumers are facing much higher energy costs than they did a year ago.

But his plan won't be getting Baird's vote.

"A company could simply buy their way out of the problem by simply paying the tax and continuing to go forward, putting carbon into the atmosphere," Baird told reporters in Vancouver on Friday.

"We think we need mandates to reduce carbon emissions, to reduce greenhouse gas emissions."

Baird distanced his comments from B.C.'s carbon tax, saying each level of government has to deal with the issue of global warming in its own way.

But the federal Liberal plan would simply let big industrial polluters buy their way out of emissions controls, he said.

"We believe a broad-based carbon tax, a $15-billion-a-year carbon tax, is not the way to go," Baird said. "A simple pay-to-pollute philosophy won't lead to real reductions."

B.C., Quebec, Ontario and Manitoba have also endorsed cap-and-trade plans which would see businesses that are unable to meet emissions buy carbon "credits" from firms that have come in under the limit.

While Baird praised some provincial governments for their work on emissions reductions, when pressed he said he was not there to analyze the various strategies of different governments.

He has, however, expressed doubts the provinces will equal the 20 per cent reduction in emissions promised by 2020 by Prime Minister Stephen Harper.

He said there's work yet to be done.

"We also have to break the back of growing emissions and that really makes the job twice as difficult," Baird said.

"We're starting with the big polluters because we believe the best place to start is where the big emissions are."

The minister said some 700 industrial and power companies account for 50 per cent of emissions in Canada.

Dion's plan calls for a shift of more than $15 billion in taxes away from income and business taxes, over time, to offset an equally massive carbon tax on polluters that would ultimately increase the cost of carbon-based energy.

The plan mixes tax policy with social engineering, incorporating proposals for reducing poverty with environmental concepts, including improving mass-transit systems.

Adriane Carr, deputy leader of the federal Green Party, was skeptical about both federal parties' plans.

She said the best solution is a combination of taxes and emissions caps.

"We need both," she said. "He's making it sound like it's one or the other."

She said Canada needs regulations to cap big polluters' emissions and a carbon tax to drive investment into renewable energy and to create government revenue.

Dion has been touting the issue as a key issue in the next federal election.

Some say upcoming byelections in Ontario and Quebec could serve as a litmus test for a possible general election this fall but Baird wasn't buying it. He said the three byelection constituencies represent one per cent of Canadian voters.